Berkshire Stock Slides on Buffet Exit, Earnings Miss

Options traders are targeting the stock as it pulls back from record highs

Jake Scott

Deputy Editor

May 5, 2025 at 10:22 AM

Class B shares of Warren Buffett’s Berkshire Hathaway Inc (NYSE:BRK.B) are down 6.3% at $505.66 at last glance, pulling back from Friday’s record high, after the conglomerate reported a 14% drop in first-quarter operating earnings. The decline was largely driven by a 48.6% plunge in insurance underwriting profits.

Adding to the headlines, Buffett surprised shareholders at Saturday’s annual meeting by announcing plans to step down as CEO by year’s end. The board unanimously elected Greg Abel to take over as president and CEO starting Jan. 1, 2026, while Buffett, 94, will remain as chairman.

Options traders are taking notice. So far today, more than 35,000 calls and 30,000 puts have changed hands -- 7 times the average intraday volume. New positions are opening at the nine most active contracts, led by the weekly 5/9 530-strike call.

On the charts, Berkshire Hathaway stock is gapping back below its 20-day moving average, after holding above the trendline through late April. The equity hit an all-time high of $542.07 on Friday, and remains up 12.5% year to date

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